The e-commerce sector in the region is developing at a phenomenal rate and will remain a major strategic focus for the company in the coming years
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1 Our Services Aramex provides global door-to-door shipping solutions for time-sensitive documents and packages to customers across all industries. We offer a range of express services to suit customers needs in terms of cost and speed, as well as real-time online tracking updates, automatic delivery notifications, proofof-delivery, and a variety of import, export and customs clearance services. The e-commerce sector in the region is developing at a phenomenal rate and will remain a major strategic focus for the company in the coming years OUR SERVICES International Express Delivery As the demand for accurate and customized delivery is ever-increasing, modern specifications and the ability to maximize operational efficiency has become an important factor for our customers. This year we continued to expand our Express network across the globe, assigning new service partners in Europe and Asia, while optimizing transit times and routing between different origins and destinations and strengthening our deferred and ground service offerings in multiple regions. Furthermore, As the e-commerce sector in emerging markets in the Middle East, Africa and Asia keeps developing at a rapid rate it will remain a major strategic focus for Aramex and we will continue to enhance our delivery and customer service capacities and our network serviced destinations in Europe and Africa. To offer the best value to our customers, who remain at the heart of our operational strategies, we also made continuous adjustments of our network capacities to cater for the growth of our e-commerce business. We have introduced more e-commerce solutions across the board including a return portal in Europe to manage different return/exchange scenarios for our customer including the introduction of online duty payment solutions. Freight Forwarding Our freight services comprise air, land and sea transportation, providing cost-effective delivery for heavier, less time-sensitive packages. Freight services range from port-to-port shipping to full door-to-door delivery, with options for temperature-controlled haulage, customs clearance, advanced online tracking, third-party shipping, regional distribution, chartered aircraft or vessel services, and exhibition handling. (G4) (G12) (G4-4) 12
2 As part of the continuous developments in the Aramex freight services, and keeping up with clients needs and expectations for an efficient and economical transportation solution, 2013 was a busy year for Aramex freight where we started a number of new services. These included establishing three freight hubs in Africa to cover West, East and the Sub-Saharan part of the continent in Accra, Johannesburg and Nairobi. We also strengthened our footprint in the CIS region by opening up new offices in Kazakhstan and Georgia - to better service the area. We continue operate one of the most extensive and technologically advanced land freight networks in the Middle East, the United Kingdom and Ireland. We have also established new regular European routes connecting mainland Europe with Scandinavia, in addition to African routes from Kenya and Tanzania to neighboring land-locked countries. We have also maintained our technological edge which we believe has helped us deliver a better, more proactive service to our clients. Through our website, clients can see real time updates directly from the various carriers we use for our air services, which reduces human errors and increases visibility for our customers. Domestic Express Delivery Our Domestic Express service provides nation-wide door-to-door delivery of urgent packages, with options including same-day or next-business-day deliveries, package collection and return services, and cash-on-delivery. In 2013 we completed developing our fleet management system and we plan on rolling it out in In 2012, we had introduced mobile printing stations and redesigned our courier management software to optimize cash collection deliveries. We have developed it further in 2013 and it has already helped us streamline the collection and delivery of e-commerce and cash-on-delivery shipments in the MENA region. Last year we launched our Nokia mapping system My Address, the first of its kind service in the Middle East. Using a web interface, Aramex customers will be able to pinpoint their exact position as well as select a delivery time when they place an order. Adoption of this service has grown across our core markets and we expect it to further develop and expand. Integrated Logistics, Warehousing and Supply Chain Management Our end-to-end logistics solutions ensure the efficient transfer, storage, and distribution of products and information throughout the supply chain, from the moment our customers inventory leaves their suppliers or factories until it reaches retailers or end-users. This is made possible by our logistics centers, which are strategically located in key areas across the GCC, Middle East, North Africa, Western Europe and Asia, and are powered by state-of-art technologies to ensure world-class security and constant realtime visibility. (G4-4) (G4-17) 13
3 In 2013, we have continued expanding in our core markets and have opened a new state-of-the art facility in Alexandria, Egypt to complement our facility in Cairo and provide logistics solutions to our customers in that area, in addition to other new facilities in Lebanon, Algeria, Saudi Arabia and South Africa to accommodate the needs of our existing and new customers. Technology has always been a key enabler in delivering service excellence and we have continued investing in our warehouse management system to deliver advanced solutions to run more efficient operations in our facilities. Moreover we ve also upgraded other features like enhancing order tracing visibility to our customers - especially in our e-commerce business - where normally there is a higher demand for such features. In our ongoing efforts for operational excellence, we have introduced new quality measures to provide visibility on warehouse performance and to make sure each client s specific requirement is met as per our agreements with them, allowing the team to proactively take action to ensure optimum results at all times. Information Management Solutions (InfoFort) InfoFort is a wholly-owned Aramex subsidiary and the leading secure records and information management solutions provider in the MENA region, providing information security to ensure the confidentiality and preservation of client data. InfoFort solutions span the full information lifecycle, including secure storage and management of physical and electronic records, media/tape vaulting and rotation, secure shredding, IT escrow services, cheque management and consultancy. In 2013, InfoFort continued its growth in its core markets in the Middle East and built on its expansion strategy in Africa. InfoFort further promoted InfoCARE, its social platform for enabling information-driven sustainability initiatives. This platform, which was started in 2012, showcases how InfoFort developed a model for utilizing the company s cumulative expertise and highly-motivated and engaged talent to innovate in saving the environment, supporting mission-critical organizations to ultimately save lives, and in developing and empowering youth living in marginalized communities. In 2013 InfoFort also published the industry s first sustainability report in the MENA and started tracking carbon emissions using the Greenhouse Gas (GHG) protocol developed by World Business Council for Sustainability Development (WBCSD) & World Resources Institute (WRI). Our Supply Chain Aramex s asset-light business model heavily relays on its supply chain that consists of international and local suppliers. With one of the largest logistics and transportation networks in the world, Aramex s widespread network consists of national and international airlines operating locally or in multiple countries, as well as several sea lines. Moreover, regionally we deal with land freight operators. Through our extensive freight forwarding network and comprehensive transportation solutions, we offer door-to-door delivery from one or multiple suppliers into the warehouse with smooth delay-free customs clearance (G4-4) (G4-12) 14
4 where we aim to include both local and global suppliers in our supply chain. However, being a local entity in areas we operate, we ensure to source locally where available and possible. Therefore, the majority of our spending is on local suppliers. At Aramex, we make sure to engage with our suppliers through different channels, on a regular basis whether daily, weekly and upon need. In 2013, we started implementing a supplier evaluation mechanism that covers our code of conduct and compliance with international laws. We started the implementation on the major existing and new suppliers during the second half of 2013; while we covered all of the new suppliers during which we plan to cover the remaining within Our roots are entrepreneurial; we grew from a small startup founded by two people to a global company with more than 13,000 employees. With spirit we make sure to leave a positive social impact in the areas where we operate. We ensure that we employ members of the local community, and provide them with on the job training and capacity building. Moreover, given the nature of our services, we are able to enhance connectivity and facilitate the flow of goods and commerce, to reach areas that are previously underserved. Through this, we encourage the establishment and growth of markets. Through the services we offer e-commerce companies and different SME s we promote positive economic growth in the regions we are in, indirectly to benefit these communities. Moreover, entrepreneurship and SME s are an important generator of jobs in emerging and developed economies alike. Our continued support of entrepreneurship and of SME s in the region and globally provides socioeconomic benefits, along with our commitment to support youth education and community development and our active support given to students through scholarships, training and internships creates a sphere of positive influence that goes beyond our immediate operational impact. Shop and Ship Shop and Ship is our unique online shopping delivery service that enables thousands of customers globally to enjoy the benefits of having a mailing address in the US, UK or China, without actually living there. This service offers a personal forwarding address in these countries where customers can receive personal and business packages. Aramex then forwards shipments to customers at very competitive rates to save time, effort and money. The service is provided in more than 35 countries in the Middle East, Africa, Europe, and Asia. In 2013, Shop and Ship continued its global expansion by launching five new shopping destinations for consumers: Dubai, Mumbai, Istanbul, Hong Kong and Johannesburg. This is in line with positioning the brand as the leading cross-border shopping solution and destination. Moreover, major operational enhancements and improvements in customer service channels and online (EC8) (G4-4) (G4-12) 15
5 payment gateways were completed during the year to increase customer satisfaction and meet delivery expectations. The focus on mobile as a primary touch point continued with Apps across all the leading platforms: ios, Android, Blackberry and Windows Mobile. This is being expanded by launching a fully responsive website design for Shop and Ship. Shop and Ship s Integrated Partner program kicked off in the second half of 2013, making it the ideal enabler for merchants wishing to expand their international sales reach, economically and effortlessly. Merchants from UAE, India, UK, and Turkey have already started reaping the benefits of this cross-border solution. E-Business Solutions The e-commerce sector in the region is developing at a phenomenal rate and will remain a major strategic focus for the company in the coming years. As the sector continues to develop in the Middle East and other emerging markets, Aramex is leveraging its logistics expertise and infrastructure to partner with entrepreneurs and online retail sites, facilitating trade and commerce and creating economic opportunities in these markets. This growth in e-business also has potential environmental benefits as a result of the associated reductions in energy and paper consumption. We provide a range of solutions to help both start-ups and well-established businesses to launch or expand their e-commerce operations, including warehousing and integrated logistics, payment collection services, order processing, and outsourcing of customer service through various contact centers. (G4-4) 16
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